COBRA FAQ's

In 2009, the American Recovery and Reinvestment Act (ARRA, also called the Stimulus Act) provided a 65% reduction in monthly COBRA premiums for individuals who met the qualifications.

Below you'll find some helpful facts on this Health Insurance coverage option.

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Question:
I was recently laid off of my job. I was told that I may be able to get a reduction in my COBRA premiums? Is this true?

Answer:
The answer to this question depends on when you were laid off and under what circumstances. The American Recovery and Reinvestment Act of 2009 (ARRA) provides for a 65% reduction of COBRA premiums in some cases. You can pay only 35% of the full COBRA premium for up to 15 months if you are eligible for the premium assistance. To qualify, you must have involuntarily lost your job between September 1, 2008 and February 28, 2010. If your job ended on or after March 1, 2010 you will not be eligible for the premium assistance. You will also not be eligible for premium assistance if you quit your job – but you can still use COBRA to continue your employer-sponsored group health coverage.

Here are two examples. In the first case, my job ended on February 7, 2010. I did not quit but was laid off. My health coverage from my job will end at the end of February. Under COBRA, I can choose to continue the group health coverage for myself and for any dependents after February. I will have to pay a monthly premium to keep this coverage. Because my job ended before March 1, 2010 I am eligible to pay a reduced monthly premium (only 35% of the full premium) for up to 15 months. After 15 months, if I still need the coverage, I will have to pay the full premium amount each month.

In a second example, I am laid off on March 4, 2010. I am not eligible for premium assistance under ARRA because my job ended after February 28, 2010. I can still use COBRA however to continue the health coverage for myself and any dependents. I can continue my health coverage for up to 18 months (or 29 months if I have been determined disabled by Social Security).

What Is COBRA Continuation Coverage?

COBRA law was enacted in 1985 under the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA allows an employee to choose to continue employer-sponsored group health coverage after the employee stops working. The employee can choose to pay a monthly premium and continue the health coverage for themselves and any dependents who were covered by the plan. To qualify for continuation coverage under COBRA, an employee must have lost group health coverage because of: 1) voluntary or involuntary termination of employment, for reasons other than gross misconduct, or 2) a reduction in the hours they work. There are other events (such as the death of a covered employee, divorce, or a child's loss of dependent status) that can provide someone with an opportunity to continue health coverage under COBRA. The employee can continue health coverage for up to 18 months, or up to 29 months if they are found disabled according to Social Security rules.

When a beneficiary is considering using to use COBRA, it is important that they consider all other possible health coverage options, such as Medicaid. COBRA premiums can be very expensive for many of the beneficiaries we work with. The ARRA premium assistance program has made COBRA premiums more affordable, but this program will not be available to workers whose jobs end after February 28, 2010. Often individuals will use up all of their savings paying COBRA premiums, when there are other less expensive alternatives that can provide them with health coverage.

Employers with 20 or more employees are subject to federal COBRA rules. In your state, additional employers may be required to offer continuation coverage. 40 states have laws that expand the federal COBRA laws. You can find information on your state COBRA laws at:

http://www.statehealthfacts.org/comparetable.jsp?cat=7&ind=357&typ=5&gsa=1

Full information on COBRA, including how to enroll in COBRA continuation coverage, can be found at the U.S. Department of Labor website:

http://www.dol.gov/ebsa/cobra.html

This website provides a Fact Sheet on COBRA Premium Reduction under the ARRA:

http://www.dol.gov/ebsa/newsroom/fsCOBRApremiumreduction.html

There is also “An Employee's Guide to Health Benefits Under COBRA” will at:

http://www.dol.gov/ebsa/publications/cobraemployee.html

Any questions may be directed to: rsi5@srt.com

Pomeroy's New American Recovery and Reinvestment Act ND Map

Slightly off-topic for this blog - but definitely ND specific. ND Representative Earl Pomeroy, on his website, has set up an interactive map to see what projects are being funded in ND through the ARRA. If interested, you can check it out HERE.

Any questions may be directed to: rsi5@srt.com

Social Security One-Time Stimulus Package Frequently Asked Questions

QUESTION: Who will receive a one-time economic stimulus payment from Social Security?
ANSWER: Nearly 55 million Social Security and SSI beneficiaries will receive one-time payments of $250 each.

QUESTION: When can I expect to receive my payment?
ANSWER: We plan to pay all eligible Social Security and SSI beneficiaries by late May 2009, so you should expect to receive your payment by no later than the first week of June 2009. The one-time payment will be a separate payment, which will not be included in your regular monthly benefit payment.

QUESTION: How will I receive my one-time payment?
ANSWER: We will deliver your payment in the same way we currently deliver your Social Security or SSI benefit. If we deliver your monthly benefit by check, we will deliver your one-time payment by check. If you receive a monthly direct deposit or Direct Express debit card payment, that is how you will receive your one-time payment.

QUESTION: Can an individual receive more than one payment?
ANSWER: No, individuals may receive only one $250 one-time payment regardless of how many types of benefits they receive. An individual receiving Social Security and SSI or an individual receiving Social Security and VA or Railroad Retirement benefits, will be entitled to only one payment.

QUESTION: Are beneficiaries from other federal programs eligible for this one-time payment?
ANSWER: Yes, individuals receiving benefits from the U.S. Department of Veterans Affairs or Railroad Retirement Board may be eligible for these one-time payments.

QUESTION: How will the $250 payment be treated or effect income, resources, overpayments, and underpayments by the Social Security Administration?
ANSWER:
a. The $250 payment is not counted as income - the Economic Recovery Act payment made to any recipient based on this law will not be counted as income for purposes of determining eligibility and payment amount for SSI.
b. The $250 payment effect on underpayments and overpayments - The payment is not a SSI payment; therefore, it cannot be used to recover an existing SSI overpayment or be included as part of an SSI underpayment.
c. The $250 payment effect on resources - If the payment is retained by the SSI recipient, it will not be counted as a resource for the month of receipt or for 9 months following the month of receipt. For example, if the payment is received in May 2009, it will be excluded from resources in May 2009 through February 2010. The funds, if retained, would be countable as a resource starting in March 2010.

Background Information

On February 17, 2009, President Obama signed into law the “American Recovery and Reinvestment Act of 2009”, Public Law 111-5, which provides for a $250 payment to SSI recipients (including children) who were:
• eligible for an SSI cash benefit in either November 2008, December 2008, or January 2009, and
• not receiving SSI while living in an institution.
This emergency message explains how the Economic Recovery Act payment will be treated for purposes of determining eligibility and payment amount for TXVI Supplemental Security Income (SSI).


Any questions may be directed to: rsi5@srt.com

SOCIAL SECURITY News Release Vice President Biden Announces $250 Recovery Payments to Go to Social Security and SSI Beneficiaries in May

Vice President Joe Biden and Michael J. Astrue, Commissioner of Social Security, announced today that the federal government will send out $250 economic recovery payments to people who receive Social Security and Supplemental Security Income (SSI) benefits beginning in early May 2009 and continuing throughout the month. No action is required to get the payment, which will be sent separately from the person’s regular monthly payment.

"The Social Security Administration and Commissioner Astrue have been working closely with other federal agencies to get these payments out the door in record time and into the hands of folks who need it most," said Vice President Biden. "These are checks that will make a big difference in the lives of older Americans and people with disabilities - many of whom have been hit especially hard by the economic crisis that has swept across the country."

“We have been working diligently to issue the $250 one-time recovery payments as soon as possible,” Commissioner Astrue said. “The legislation requires extensive coordination with other federal agencies and I’m pleased we are on track to issue these recovery payments earlier than the statute requires. Soon more than $13 billion will be in the hands of more than 50 million Americans.”

The American Recovery and Reinvestment Act of 2009 provides for a one-time payment of $250 to adult Social Security beneficiaries, and to SSI recipients, except those receiving Medicaid in care facilities. To receive the payment the individual must be eligible for Social Security or SSI during the months of November 2008, December 2008 or January 2009.

The legislation also provides for a one-time payment to Veterans Affairs (VA) and Railroad Retirement Board (RRB) beneficiaries. The VA and RRB will be responsible for paying individuals under their respective programs. However, if someone receives Social Security and SSI, VA or RRB benefits, he or she will receive only one $250 payment. People getting Social Security or SSI should not contact the agency unless a payment is not received by June 4, 2009.

For more detailed information about the $250 one-time economic recovery payments, go to www.socialsecurity.gov/payment.

To learn more about the American Recovery and Reinvestment Act of 2009, go to www.recovery.gov.


Any questions may be directed to: rsi5@srt.com

Housing Information: Stimulus Bill and Low-Income Housing Tax Credits

Until Congress recently enacted the Stimulus Bill, the IRS had taken the position that Low-Income Housing Tax Credits were not "federal financial assistance" and therefore the requirements of Section 504 of the Rehabilitation Act of 1973 did not apply. HUD had tacitly deferred to IRS. As a consequence, people with disabilities were frequently discriminated against in one of the largest housing programs in the country.

With the recently enacted Stimulus Bill, people with disabilities now have the same Section 504 rights and protections as they have in other "federal financial assistance" programs.

The recently enacted Stimulus act has two important provisions with regards to the Low-Income Housing Tax Credit program that disability advocates should be aware of.

First, Congress enacted a "housing credit exchange program." Your State Housing Finance Agency (HFA) is authorized to "exchange" 100% of unused 2007 and 2008 LIHTC and 40% of their 2009 allocation to developers. In return, your State Housing Finance Agency will receive 85 cents on the dollar.

This is very important because if a housing developer had applied and received a LIHTC allocation but then could not, given the economy, find an investor that would "buy" the credit, with the Stimulus Bill the developer could turn in the credits and receive cash (85 cents on the dollar) from your HFA.

With these funds, your State will be able to continue funding programs for qualified low-income housing residents. Disability advocates must make sure that your HFA requires developers (for housing developments from 2007-2009) comply with Section 504 (see below).

Second, Congress allocated HOME funds to HFAs to fill gaps in tax credit deals. Developers will have to apply for these funds and these HOME funds will fill "gap financing" for tax credit developments. Housing developers must show that the use of such funds will increase the total funds available for the construction or rehabilitation of the affordable housing.

Third, funds provided from both of these programs must be used before January 1, 2011 or the funds will be returned to the Treasury.

What does this mean for advocates?

Funds from these two programs must be used and allocated in accordance with the HFA's allocation plans. However, in many states, these plans in the past did not require compliance with Section 504. You must address this and make sure that before your HFA uses any of these funds, there is
an amendment to the allocation plan so that developers know they must comply with Section 504.

There is no doubt that these funds are "federal financial assistance" and therefore Section 504 of the Rehabilitation Act is applicable. While there had been some dispute whether "tax credits" were "federal
financial assistance," there is no issue with the two funds. This gives advocates a new opportunity to make sure there is compliance with 504.

Therefore, 24. C.F.R. section 8.22 requires that at least five percent of the units be fully accessible to people with physical disabilities and another two percent for people with visual and hearing impairments. Not only must these units be accessible, but they must be targeted to people who require these accessible features.

Any HFA accepting these funds MUST reopen their allocation plans to make sure they require AT LEAST FIVE PERCENT of the new construction must be fully accessible.

At least for the funds in the two Stimulus Bill, we should also be demanding that the HFA target or change allocation plans to target a large portion of these funds to the lowest-income people - people at the SSI income level/18% of the average median income, something most HFAs throughout the country have not done with the LIHTC in the past.

Nationally, we should be looking at how the new Secretary of HUD implements the Stimulus Bill. This is an important opportunity for HUD to take the lead and address the shameful housing crisis people with
disabilities face.

Steve Gold, The Disability Odyssey continues

Back issues of other Information Bulletins are available online at
http://www.stevegoldada.com
with a searchable Archive at this site divided into different subjects.


Any questions may be directed to: rsi5@srt.com

One-Time Stimlus Payments Disregarded

If you receive SSI, you will be receiving a one-time payment of $250 - hopefully in May. That's good news #1.

Good news #2 is that those payments will not affect your SSI in any way! The one-time payments are disregarded by SSA completely.

Any questions may be directed to: rsi5@srt.com

Obama Stimulus Plan One-Time Payments to SSA Beneficiaries

Center of SSA homepage, www.socialsecurity.gov, now has a button Economic Stimulus One-Time Payments.
As of now, information states:
"President Obama recently signed the American Recovery and Reinvestment Act of 2009. This act provides for the one-time payment of $250 to individuals who get Supplemental Security Income (SSI) or Social Security benefits."

SSA expects everyone who is entitled to a payment to receive it by late May 2009. No action is required on your part.
SSA is currently working on the details regarding how they will issue nearly 55 million one-time payments to beneficiaries.

When more information becomes available, SSA will promptly post it here. Updates can also be found at this blog.

Please be on the lookout for economic stimulus scam's. As always, people should protect their personal information.

Any questions may be directed to: rsi5@srt.com

Need Help Filing for the Economic Stimulus Payment?

Super Saturday — March 29

Several IRS offices in North Dakota will be open on Super Saturday to prepare the simple Form 1040A for people who are filing a return solely to receive their stimulus payment. Operating hours will be 9 a.m. to 3 p.m., although some may be open longer. IRS employees will help prepare the Form 1040A returns for low-income workers, retirees, disabled veterans and others.
IR-2008-50, IRS Sets March 29 as “Super Saturday” to Help Retirees, Veterans, Low-Income Workers Receive Economic Stimulus Payments
Super Saturday Locations for March 29
Super Saturday in North Dakota


Locations


Belcourt - BIA 7, House 85(Legal Services of ND Belcourt)58316
Legal Servicesof ND-BelcourtPathways to Progress
10 a.m. - 2 p.m.

Bismarck - 2911 N. 14th Street58503
IRS
9 a.m. - 3 p.m.

Fargo - (Federal Bldg)657 Second Avenue N58102
IRS
9 a.m. - 3 p.m.

Grand Forks - (Federal Bldg Courthouse)102 N. Fourth Street58203
IRS
9 a.m. - 3 p.m.

Minot - 305 17th Avenue SW58701
IRS
9 a.m. - 3 p.m.

Any questions may be directed to: rsi5@srt.com

More on the Economic Stimulus Package - Tax Prep

Individuals who need to file a return this year to receive a stimulus payment may be able to take advantage of thousands of free tax preparation sites nationwide for low-income and older taxpayers.
Free File: Economic Stimulus Paymentprovides free tax preparation software and electronic filing for people who are submitting a return solely to receive their economic stimulus payment
The Volunteer Income Tax Assistance (VITA) program provides help to low- and moderate-income taxpayers. Call 1-800-906-9887 to locate the nearest VITA site.

Remember that you must file tax returns even if you don't have taxable income in order for the payment to be released to you.

Social Security benefits, Veteran's benefits, and Railroad Retirement benefits all are qualifying income for the payments. If a person has more than $3,000.00 in any of these benefits, that individual will be due a rebate payment at least of $300.00.

Remember that SSI is not qualifying income. These payments will also not affect income-sensitive programs such as SSI.

Any questions may be directed to: rsi5@srt.com

Economic Stimulus Package - "How will that affect me?"

Economic Stimulus Payments

Starting in May, the U.S. Treasury will begin sending economic stimulus payments to more than 130 million individuals. The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive this payment. Here are a few facts on these payments.

A worker or beneficiary must file a 2007 federal tax return to get the payment even if he/she would not regularly be required to file a return.

To obtain the payment, an individual must have at least $3,000 of qualifying income.

Qualifying income includes earned income such as wages, net self-employment income, and Title II Social Security benefits such as Social Security Disability Insurance benefits.

Qualifying income does not include Supplemental Security Income (SSI).

The minimum stimulus payment for an individual who has little or no tax liability is $300.

The stimulus payments will not count toward or negatively impact any other income-based government benefits, such as SSI and food stamps.

For more detail, check out the IRS web site at: www.irs.gov.